China’s Nvidia Rival Moore Threads Soars 425% in Market Debut

TLDR

• Moore Threads, founded by former Nvidia executive Zhang Jianzhong in 2020, surged 425% on its Shanghai STAR Market debut after raising over $1 billion in its IPO on Friday.
• Retail investor demand was extreme, with individual orders exceeding available shares by roughly 2,750 times, reflecting strong interest in China’s domestic AI chip sector.
• The company closed at 600.5 yuan with a market capitalization of approximately 282.3 billion yuan (around $40 billion), though this remains a fraction of Nvidia’s nearly $4.5 trillion valuation.
• Moore Threads is the first of China’s “four little dragons” AI chip companies to go public, with plans to use IPO proceeds for GPU research, development, and working capital.
• The IPO comes as China accelerates its push for self-sufficient AI infrastructure following US export restrictions and the success of domestic AI startup DeepSeek’s cost-effective large language model.

Moore Threads staged a dramatic market debut on Friday, with shares jumping 425 percent on Shanghai’s STAR Market. The AI chip designer raised more than $1 billion in its initial public offering before closing at 600.5 yuan per share.

Founded in 2020 by Zhang Jianzhong, a former Nvidia executive, Moore Threads builds GPUs for AI training similar to its American counterpart. The company reached a market capitalization of approximately 282.3 billion yuan, equal to roughly $40 billion.

Retail investor enthusiasm was extreme during the offering. Individual investor orders exceeded the available shares by about 2,750 times, showing strong demand for domestic AI chip companies.

Moore Threads is the first of China’s “four little dragons” AI chip startups to list on a public exchange. The company tripled its revenue last year, though it continues to operate at a loss.

The IPO used a special pathway for unprofitable tech firms to list on the STAR Market. This Nasdaq-style venue was created in 2019 to help technology companies raise growth capital.

Zhang told Chinese state media that “computing power is state power” and argued AI is not in a bubble as long as large language models continue advancing. He said the sector would remain healthy provided developers avoid major problem-solving bottlenecks.

China’s AI Chip Sector Gains Momentum

The IPO comes during a period of increased investment in China’s AI sector. Startup DeepSeek released a large language model that rivaled global offerings at lower cost, sparking a wave of capital into domestic tech giants including Alibaba and Tencent.

Moore Threads plans to use its IPO proceeds to expand GPU research and development while strengthening its working capital position. The company operates in a market where Beijing is pushing for reduced dependence on foreign computing technology.

In October 2023, the Biden administration added Moore Threads to the Commerce Department’s entity list. The designation cited national security concerns and made it harder for the company to source advanced equipment from US suppliers.

Despite Friday’s surge, Moore Threads remains much smaller than Nvidia, which has a market capitalization near $4.5 trillion. Analysts note that Chinese AI chips and models still lag behind foreign platforms in certain performance areas.

The Moore Threads debut may set expectations for upcoming semiconductor listings in China. MetaX, another member of the “four dragons” group, is working toward an IPO expected to raise more than $550 million.

Beijing continues to support domestic semiconductor development through policy measures and funding. Private capital has remained engaged with the sector despite concerns about profitability timelines for many AI chip startups.

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